@techreport{NBERw14060,
 title = "Plant-Size Distribution and Cross-Country Income Differences",
 author = "Laura Alfaro and Andrew Charlton and Fabio Kanczuk",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "14060",
 year = "2008",
 month = "June",
 URL = "http://www.nber.org/papers/w14060",
 abstract = {We investigate, using plant-level data for 79 developed and developing countries, whether differences in the allocation of resources across heterogeneous plants are a significant determinant of cross-country differences in income per worker. For this purpose, we use a standard version of the neoclassical growth model augmented to incorporate monopolistic competition among heterogeneous plants. For our preferred calibration, the model explains 58% of the log variance of income per worker. This figure should be compared to the 42% success rate of the usual model.},
}